Bugging Out Over VW Settlement; Trump Thinks He Can Do It All; Time to Buy a Keurig?

Buggin’ out…

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VW is getting set to pony up some $4 billion in settlement money after agreeing to plead guilty to charges of conspiracy to defraud the U.S. government and obstruct a federal investigation. To break it down, the company will cough up $2.8 billion in criminal fines and another $1.5 billion in civil penalties. With that settlement, the company achieves the dubious distinction of having the largest penalty ever levied by the U.S. government against an automaker. Pretty classy for Europe’s largest car manufacturer. But I guess that’s what happens when you get busted for trying to cheat on emissions tests. VW had initially insisted that the scheme was the work of a few isolated employees. But now, lo and behold, six German execs are now facing charges, and the arrests probably won’t stop there. While Oliver Schmidt was already arrested in Florida this week, the others are still biding their time in Germany, with no guarantee that they’ll meet with justice courtesy of the United States judicial system. And even though VW swears it’s changed its naughty ways and is cooperating fully with authorities, it’ll still be watched for the next three years – just to be sure. Shares of the company rose as much as 4% today, it’s highest price since the scandal first erupted. But that doesn’t mean that this unfortunate episode has come to an end as there are still plenty of other countries that could also very well pursue action against Volkswagen.

Not so sure about this…

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Looks like Trump’s not going anywhere. Not even away from his business empire. The President-elect, in a news conference today, discussed that he will not be selling off his global empire and put his liquid assets in a blind trust. However, his assets will still be placed into a different type of trust that will keep him from making decisions that would personally benefit him.  According to Trump’s flack, a blind trust wasn’t even a realistic option for Trump anyway since real estate can’t just be sold off so easily as stocks and other assets can.  Instead, he will remove himself from all business dealings, resign from all his positions and hand-off control to his two sons. It’s just not clear when he’ll actually stick to that plan since just this weekend he turned down a $2 billion development deal in Dubai. Speaking of which, his company will not enter into any new business deals abroad until after his term ends. How gallant of him. Domestic deals, however, are a whole other story. They’ll be permitted as long as they are met with approval from an ethics adviser hired to work specifically for the Trump organization. See how that works out? Ethics watchdogs aren’t down with Trump’s plan since they feel it will do little – if nothing – to prevent conflicts of interest. But ethics or not, the fact is, a President is not required by law to even avoid conflicts of interest. Donald Trump also stated that he could run both the White House and his business except that he won’t because it doesn’t look nice. Ya think?

Are you ready for this jelly?

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Savor that cup of coffee now because it’s about to get a bit more expensive. Well, that’s assuming it’s packaged coffee. The biggest coffee roaster in the U.S., J.M. Smucker Co – yes, the one that makes jelly – decided to raise the prices on its packaged coffees, including its Folgers, Dunkin’ Donuts and Cafe Bustelo brands. I did say a bit because that increase, on average, will only be about 6%, since the costs involved in producing green coffee have gone up as well.  But don’t bother blaming the jelly company execs. Blame Arabica coffee futures. Or rather, Mother Nature, since coffee futures have gone up 30% in the last year due to drought conditions in several coffee-producing regions. In all fairness, J.M. Smucker Co. actually decreased the price of its coffee last May courtesy of a Brazil oversupply. So I suppose things are just kind of even-ing out. Incidentally, K-cup pods are excluded from the price increase. So if you haven’t bought one of those nifty machines yet, now might be a good time to scoop one up.

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Greece Needs a Man With a Plan; Cruisin’ to Cuba; Starbuck$-ing Your Coffee

Ode to a Grecian fiscal burn…

Image courtesy of  jesadaphorn/FreeDigitalPhotos.net

Image courtesy of jesadaphorn/FreeDigitalPhotos.net

Today is yet another day where the world gets to sit back and cry as stocks all over the globe continue to go south because the Greeks just can’t seem to get their debt crisis under control. The mood might have improved had Greek officials bothered to come up with some sort of plan to help ease the situation. But as more than one eurozone official put it, they have “no concrete proposals.”  However, Greece’s Prime Minister Alexis Tsipras has a plan…to address the European Parliament on Wednesday, much to the irritation of many a European official, who aren’t eager to bail out Greece, yet again. Germany’s Chancellor Angela Merkel and French President Francois Hollande also have a meeting planned with Tsipras. But both leaders have very different ideas about how to handle Greece. The Germans do not want Chancellor Merkel to give in to the Greeks, once more, and would even like to see Greece out of the eurozone altogether. In fact, one German official would prefer if Merkel would just completely reject negotiations. France doesn’t see the benefits of these actions but doesn’t exactly want to pony up the cash either.

Bienvenido….

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Image courtesy of Gualberto107/FreeDigitalPhotos.net

You can now add Carnival Cruise Lines to the list of operators making their way down to Cuba. “All of our research suggests there is huge pent-up demand for the Cuba experience,” a company spokesman noted. As part of the line’s “fathom” brand, travelers eager to visit the island nation will now have the chance to book that dream trip for a mere $2,990 per person – plus taxes and port fees. However, don’t bother bringing extra cash for gambling or booking reservations for snorkeling expeditions. Passengers aboard the Adonia ship, which carries just 710 passengers, will be required to spend eight hours of each of their trip days immersed in Cuban cultural experiences instead. If that sort of trip doesn’t appeal to you, then take it up with the U.S. government as this is all part of its rules and regulations in order to travel to Cuba.  At least you’ll have plenty of time to pack as the ships don’t set sail for the island nation until May of 2016. The tourism industry in Cuba generates more than $2.6 billion and plays a significant role in the nation’s economy. With the U.S.’s entry into the fold, you can expect that role to get even bigger.

Buzz-worthy?

Image courtesy of foto76/FreeDigitalPhotos.net

Image courtesy of foto76/FreeDigitalPhotos.net

Good news for Starbucks. But not for you. Coffee futures fell. A lot. But that cup of coffee you just picked up from the Seattle-based chain just got pricier as Starbucks started charging up to 20 cents more for its brew. The price per pound of coffee was over $221 back in October. But since then the price has fallen 44% to about $124.70 per pound. Overhead is the magic word here as Starbucks has a lot of it, from employee benefits, to rent to..well…coffee.  In fact, 88% of its costs come from goods sold – as in coffee . So, in keeping with corporate spirit, the coffee company has passed those price increases onto its customers. Funny how that works out. If you find yourself just a tad bit irritated by the price hike, then head on over to your local grocery store. and pick up some coffee products from J.M. Smucker. That company owns Folgers and has actually been cutting the cost of its coffee products since the price of coffee has been declining.